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Saturday, October 27, 2007

Magni-Tech eyes Vietnam property development market

By The Star

PENANG: Magni-Tech Industries Bhd, which is involved in garment manufacturing and packaging, is eyeing the property development market in Vietnam.

Group executive chairman Tan Sri Tan Kok Ping said the group was now studying the market demand for a variety of residential properties in Ho Chih Minh City.

“We will probably develop medium-range residential properties. But we will study the market before making a decision,” he told reporters after the company AGM yesterday.

“We are likely to get a local partner in Vietnam for the development project.”

On the group’s apparel manufacturing business, Tan said its fifth US$1.5mil manufacturing facility in Vietnam would be ready in December.

“The facility is in Vinlong, where the Mekong Delta is located. “This is our third facility in Vinlong.

“We are concentrating our manufacturing facilities in Vinlong because the cost of labour there is lower than Ho Chih Minh City,” he said, adding that its two other manufacturing facilities are in Ho Chih Minh City.

The group’s headcount in Vietnam will increase to over 5,000 from the present 4,500 when the new plant in Vinlong begins operations. All Magni-Tech facilities in Vietnam produce sports wear.

“The market in US contributes about 50% of the group’s revenue, while Europe generates 40% and Asia Pacific 10%,” Tan added.

In the first quarter ended July 31, Magni-Tech posted pre-tax profit of RM4mil on revenue of RM94mil, compared with RM312,000 and RM23.8mil respectively in the previous corresponding period.

At the AGM, shareholders approved a 5% final dividend to be paid on Nov 27.

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